TFC vs WAL: Correlation
Measured on weekly returns over the past three years, Truist Financial (TFC) and Western Alliance Bancorporation (WAL) carry a correlation of 0.86, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TFC and WAL?
Over the past 3 years, TFC and WAL moved with a correlation of 0.86, which is very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.81 lands near the 3-year figure. Over 5 years the correlation is 0.78, and the annualized covariance of weekly returns is 957.7 %².
Among the 39 assets we track against TFC, WAL ranks #9 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months TFC outperformed by 21.4 percentage points (+12.1% for TFC against -9.3% for WAL).
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
TFC vs WAL: side by side
| TFC (Truist Financial) | WAL (Western Alliance Bancorporation) | |
|---|---|---|
| 1-year return | +12.1% | -9.3% |
| 5-year return | +12.7% | -9.7% |
| Volatility (ann.) | 28.0% | 39.5% |
| Beta vs S&P 500 | 1.07 | 1.51 |
| Max drawdown (3Y) | -26.9% | -36.0% |
| Market cap | $61.4B | $8.6B |
| P/E (trailing) | 11.6 | 9.0 |
| Dividend yield | 4.10% | 2.06% |
| Sector / category | Financials | US Listed |
Year-by-year returns
| Year | TFC | WAL |
|---|---|---|
| 2022 | -23.5% | -43.7% |
| 2023 | -8.6% | +14.1% |
| 2024 | +23.7% | +29.7% |
| 2025 | +19.0% | +2.5% |
| 2026 | +5.4% | -4.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are TFC and WAL good diversifiers for each other?
No. With a correlation of 0.86, TFC and WAL move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between TFC and WAL?
The TFC/WAL correlation stands at 0.86 on a 3-year window (1 year: 0.81, 5 years: 0.78), computed from weekly returns as of 2026-08-27.
Is WAL a good diversifier for TFC?
No. With a correlation of 0.86, TFC and WAL move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.86 mean?
On the −1 to +1 scale, 0.86 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
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Related comparisons
Hubs: TFC correlations · WAL correlations
